Netflix has not disclosed the specific method they will use to address password sharing, however, some clues may have been revealed through a support page that has since been removed.
The Streamable recently reported on Netflix's plans to implement anti-password sharing measures, citing information from the company's support pages. However, Netflix has since stated that it has not confirmed the specifics of this plan for US customers.
It is known that Netflix will be expanding its password sharing restrictions in the near future, following successful tests in Chile, Costa Rica, and Peru, where extra fees were imposed for additional users outside of the primary household. The information previously available on the Netflix help center page, as well as on the Internet Archive page, has changed and is now only applicable to the test countries in Central and South America.
A Netflix spokesperson, Kumiko Hidaka, confirms that the company rolled out "Extra Member" in Chile, Costa Rica, and Peru in March, but it hasn't been introduced in the US or other countries yet. She also confirms that Netflix has announced its plans to start rolling out paid sharing more broadly in Q1 of this year, as per their earnings report on January 19.
As per the current rules on the Netflix website, only members living in the same household as the primary account holder are allowed to use a single Netflix subscription. To use multiple devices, users must connect to their primary Wi-Fi and watch something on the Netflix app or website at least once every 31 days, or their access will be blocked.
The US version of the Netflix website states that those who don't live in the same household must have their own account to use Netflix. However, the pages for Chile, Costa Rica, and Peru require users to add an extra member for anyone using their subscription outside the household. The company will use IP addresses, device IDs, and account activity to determine if someone else is using the account.
The definition of a household on the US Netflix page is limited to "people who live in the same location with the account owner." Meanwhile, the pages for Chile, Costa Rica, and Peru provide more comprehensive information on changing the primary household, signing out of accounts on devices in different locations, and what might cause a device to be blocked.
This preview shows what to expect when Netflix's password sharing crackdown goes into effect worldwide, and the difficulties it may bring to users who need to watch from multiple locations or use VPNs in their own homes.